Firm a Has a Value of $200 Million and Firm

Multiple Choice

Firm A has a value of $200 million and Firm B has a value of $120 million. Merging the two would enable cost savings with a present value of $30 million. Firm A purchases Firm B for $130 million. How much do Firm A's shareholders gain from this merger?

A) $30 million
B) $20 million
C) $15 million
D) $10 million